MTNL Unable to Fund Escrow Account for Upcoming Bond Interest Payment

New Delhi, March 13, 2026:  Mahanagar Telephone Nigam Limited (MTNL) has informed stock exchanges that it could not fund the escrow account required for the upcoming interest payment on its 7.75% Bond Series VII-E, citing insufficient funds.

The telecom PSU disclosed the development in a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Interest Payment Due on March 24

The sixth semi-annual interest payment on the bond (ISIN: INE153A08147) is scheduled for March 24, 2026.

Under the structured payment mechanism of the tripartite agreement, MTNL is required to deposit the interest amount into an escrow account maintained with Bank of India at least 10 days before the due date.

However, the company said it was unable to fund the escrow account with the required amount due to insufficient funds.

Bonds Carry Sovereign Guarantee

MTNL clarified that all bonds issued by the company carry a sovereign guarantee from the Government of India.

In case of a default in interest or principal payments, the debenture trustee can invoke the sovereign guarantee, obligating the government to make the payment.

The guarantee mechanism operates under a tripartite agreement involving MTNL, the Department of Telecommunications, and the debenture trustee.

Regulatory Disclosure to Exchanges

The disclosure was submitted to both stock exchanges:

• BSE Limited

• National Stock Exchange of India

The company has asked the exchanges to take the information on record.